In Wales, Stamp Duty is called Land Transaction Tax or LTT for short.
LTTis a tax payable when you buy or take a leasehold on property and land in Wales.
Wales used to have the same Stamp Duty system as the rest of the UK but it brought in its own system as of April 2018. Although the basic concept of Land Transaction Tax is the same as Stamp Duty – it is a tax on buying property – both the way it works and the tax rates are different.
The LTT system in Wales, plus the fact that average property prices in Wales are lower – as of February 2023 the average property price in Wales is £215,000 – means that many house buyers in Wales don’t actually pay LTT.
Please note that the calculator and tables on this page should be used as a guide only. Tax legislation is subject to change and while we endeavour to be as up-to-date as possible, you may find that we are not. With all financial matters, you should always seek expert advice.
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- LTT - Useful Statistics
- Current LTT Rates in Wales
- Land Transaction Tax Calculator
- LTT for Buy-to-Let and Second Homes
- LTT for First Time Buyers
- Other Rates of LTT: Non-Residential Property
- When You Are Entitled to a Refund
- When You Pay
- Changes to LTT
Land Transaction Tax - Useful Statistics
- From January to March 2023 there were a total of 11,910 property transactions which generated £72 million in LTT.
- 10,470 of these were residential transactions generating £54.4 million in LTT.
- £19.7 million of LTT revenue was raised from the higher rate of Land Transaction Tax.
Source: Welsh Revenue Authority
Current LTT Rates in Wales
LTT in Wales is only charged when you pay over £180,000 for a residential property. If you are buying non-residential land or property LTT applies for purchases over £150,000.
The main rate of LTT is charged at the relevant percentage rate on the amount of the purchase which falls within each band. The main rates of LTT are as follows:
Recent updates: From the 10th of October 2022 the zero rate threshold was increased from £180,000 to £225,000 and a new LTT rate of 6% was introduced for LTT band £225,000 to £400,000.
| Property Value: | LTT Rate |
|---|---|
| Less than £225k | 0% |
| Over £225,000 (Up to and including £400,000) | 6% |
| Over £400,000 (Up to and including £750,000) | 7.5% |
| Over £750,000 (Up to and including £1,500,000) | 10% |
| Over £1,500,000 | 12% |
So, for example, if you buy a house in Wales for £280,000 the LTT you owe is:
- 0% for the first £225,000
- 6% for the next £55,000
Total LTT = £3,900
But, the easiest way to find out how much LTT you might have to pay is to use a Land Transaction Tax Calculator.
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Land Transaction Tax Calculator
Introducing our Land Transaction Tax (LTT) Calculator, designed to help you easily estimate the LTT payable for property purchases in Cymru (Wales). Simply select a property type, enter the purchase price, and click "Calculate" to receive a quick LTT estimate.
Select a Property Type:
A Single Home
A Second Home or Buy-to-Let
A Non-Residential Property
LTT For Buy-to-Let and Second Homes
If you are buying a property and you already own one or more residential properties then you have to pay the higher rate of LTT.
The higher rates of LTT are as follows:
| Property Value: | LTT Rate |
|---|---|
| Up to and including £180,000 | 4%* |
| Over £180,000 (Up to and including £250,000) | 7.5% |
| Over £250,000 (Up to and including £400,000) | 9% |
| Over £400,000 (Up to and including £750,000) | 11.5% |
| Over £750,000 (Up to and including £1,500,000) | 14% |
| Over £1,500,000 | 16% |
*Please note, with second homes and buy-to-let, there is no LTT on properties that cost under £40k. However, when a home costs over £40k, tax will be owed on the full purchase price.
And if you are buying a property as a company, or as a trust, you also have to pay the higher residential rate of LTT in Wales.
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LTT For First Time Buyers
First time buyers in Wales are not given any relief from LTT. The Welsh system is different to Stamp Duty in England and LBTT in Scotland where first time buyers are eligible for reduced tax.
This is probably because the LTT threshold is lower in Wales and also the fact that average property pieces in Wales are lower than in England. The Welsh Government say that most first time buyers do not pay LTT anyway.
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Other Rates Of LTT: Non Residential Property
If you are buying a non-residential property in Wales such as a shop, office or agricultural land the rates of LTT are as follows:
| Property Value: | LTT Rate |
|---|---|
| Up to and including £225,000 | 0% |
| Over £225,000 (Up to and including £250,000) | 1% |
| Over £250,000 (Up to and including £1,000,000) | 5% |
| Over £1,000,000 | 6% |
When Are You Entitled to an LTT Refund?
If you buy a new home before selling your old home you will usually need to pay the higher rates of LTT on the new home since you already own a property. However, if you sell your old home within three years you can claim a refund of the higher rate of LTT paid. This refund will be the difference between the higher rate paid and the main rate amount that would have applied to your new home.
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When Do You Pay?
If you use a solicitor or conveyancer to buy your house in Wales they will file the Land Transaction Tax Return for you and pay any LTT due on your behalf to the Welsh Revenue Authority (WRA). LTT must be paid within 30 days of the completion of the purchase.
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Changes To LTT
The tax rates and bands for Land Transaction Tax are set by the Welsh Government and approved by the National Assembly for Wales.
LTT in Wales may be changed in future if the Stamp Duty system in England is also changed. The Welsh Government may well mirror any changes to Stamp Duty in England, although they do not have to.
For this reason it is always important to make sure you are using the latest version of a good Land Transaction Tax Calculator to calculate your LTT.
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